Warner Bros. Discovery has rejected Paramount's $108.4 billion takeover bid, urging its shareholders to do the same. The board unanimously believes the offer is unrealistic, branding it “illusory” due to the enormous debt financing required and other unfavorable terms. Warner Bros. is backing its ongoing $82.7 billion merger with Netflix, which aims to acquire its streaming and movie studios, along with a separate spinoff of its cable TV division. In its presentation to shareholders, Warner Bros. highlighted Netflix's robust financial position, contrasting it with Paramount’s struggles. Paramount has a market cap of only $14 billion, carries a “junk” credit rating, and faces negative cash flow and heavy fixed financial commitments. Warner Bros. pointed out that even if Paramount managed to finalize the deal, shareholders would have to wait 12 to 18 months for any cash, during which time they couldn’t trade their shares. Warner Bros. praised Netflix’s market capitalization of around $400 billion and its investment-grade credit rating, emphasizing cash flow projections exceeding $12 billion for 2026. The board believes that this merger offers more operational flexibility leading up to the closing. Despite its strong stance against Paramount, Warner Bros. Chairman Samuel Di Piazza Jr. indicated that the board might reconsider if a more attractive offer arose.